In a report released Friday, Greg Cipolaro, head of research at NYDIG, stated that key drivers that previously propelled Bitcoin's price to its peak—exchange-traded fund (ETF) inflows and demand for digital asset treasury (DAT) assets—are now causing prices to plummet to multi-month lows. Cipolaro said a major liquidation event in early October, which reversed ETF inflows, caused a collapse in treasury premiums, and led to a decline in stablecoin supply, indicates that liquidity is leaving the system—a "classic sign" that "the cycle is losing momentum." He noted that once this cycle breaks, the market tends to follow a predictable sequence: liquidity tightens, leverage struggles to gain momentum, and the narratives that previously supported the market no longer translate into actual fund flows. He mentioned that spot Bitcoin ETFs have transformed from a reliable engine of fund inflows into "significant resistance." During cyclical corrections, Bitcoin dominance often surges as speculative assets are liquidated more aggressively, and capital consolidates back into the most mature and liquid assets in the ecosystem. Data shows that Bitcoin dominance rose above 60% in early November and stabilized at around 58% as of Monday. Cipolaro stated that the supply of DAT and stablecoins has declined for the first time in months, indicating that investors appear to be withdrawing liquidity. However, he emphasized that even if the market decline deepens, the DAT sector still has a long way to go before a real stress reaction, and currently "leverage remains moderate and interest obligations are manageable." Despite the recent pullback, Cipolaro believes that "Bitcoin's long-term story remains unchanged" because it continues to attract institutional attention, sovereign interest is slowly building, and its role as a neutral, programmable money asset remains. He added that everything that has happened in the past few weeks has not changed its long-term trend, but cyclical factors driven by fund flows, leverage, and reflexive behavior are now playing a more powerful role. (Cointelegraph)